Car Insurance Coverage, Add-ons

Zero depreciation cover protects you from the financial burden of depreciation if your vehicle is partially damaged. This add-on is mostly available only for vehicles that are not older than 5 years. In some cases, however, the cover may be extended to cars that are upto 7 years old, depending on the car’s condition and the insurance provider.

Yes, zero-depreciation insurance will typically cover plastic and rubber parts during claims, keeping out-of-pocket expenses minimal. These parts tend to have a high depreciation rate. For example, without the zero-dep cover, the rate of depreciation on plastic and rubber parts can be up to 50%. However, with a zero depreciation cover, the rate would be 0%. 

The exact number of claims allowed per policy year varies among insurance providers. Typically, insurers allow you to use zero-depreciation coverage up to 2 times. Once the number of zero-dep claims is exhausted, any further claims are settled by applying depreciation rates. 

No, zero depreciation cover does not apply to total loss or theft; it applies only to partial damage. In the event of theft or total loss of the vehicle, the insurance company provides compensation as per the insured declared value (IDV) of the vehicle. 

Pro Tip: You can purchase Return to Invoice cover and receive the actual invoice price of your vehicle in the event of theft or total loss.

Yes, absolutely. Zero depreciation cover and the insured declared value of the vehicle play different roles in maximising protection for the vehicle.

Here’s how:

• Zero depreciation cover helps reduce out-of-pocket expenses due to depreciation rates when settling claims.

• Insured declared value is the maximum compensation you receive in case your car is stolen or damaged beyond repair. A high IDV ensures higher payouts, but can attract higher premiums too. 

Yes, you would have to pay a little extra for the enhanced cover. Zero depreciation can increase the premium amount of the base motor insurance plan by around 15% to 20%. Keep in mind that the premium may typically vary every year due to various factors like vehicle age, pricing revisions, IDV, etc., so it is not only because of zero depreciation that the premium increases every year.

Typically, zero depreciation cover applies to plastic, rubber, and metal body parts separately but proportionately because their depreciation is accounted for differently. However, to specifically protect the battery and tyres, you can consider purchasing separate add-ons such as Engine Protect or Tyre Protect. 

Once you have purchased the zero depreciation add-on cover, you can remove it only at the time of policy renewal. In some cases, your insurance provider may allow you to cancel the coverage and buy a new policy. 

Yes, typically, engine protection cover is applicable if your car stalls on flooded roads. However, remember that the insurance company might not approve your claim if the vehicle is driven further, restarted forcefully, or any such act of negligence is done on your part. When you raise a claim under this coverage, the insurance company performs an inspection of the damage. 

An engine protection cover is primarily designed to provide coverage to the engine. Hydrostatic lock damage occurs when water enters the engine cylinder. This kind of damage will typically be covered under the engine protection add-on.

A regular car insurance policy does not offer coverage for such damages. Purchasing engine protection can be a smart way to maximise the protection of your vehicle. However, it is high;y recommended that you check the inclusions and exclusions with your insurance provider. 

Yes. If you park your car in an open area, do consider buying an engine protection add-on.

• It is especially useful in flood-prone locations.

• During monsoons, water can damage the engine or electrical parts, leading to costly repairs.

• Such damage is not covered under regular car insurance.

• Hence, an engine protection add-on is recommended for better coverage.

Protecting against monsoon waterlogging is one of the primary benefits of purchasing engine protection cover. This add-on cover provides financial protection if your vehicle’s engine is damaged by monsoon waterlogging. It can help you cover damage from flooding and oil leakage to the engine and gearbox. However, if you delay getting the vehicle recovered, the damage can increase, in which case the claim can be rejected. 

Yes, it will. Regular car insurance does not cover mechanical breakdown, but the engine protection add-on will. The add-on steps in if your vehicle’s engine is damaged by sudden, accidental, or consequential oil leakage. The insurance company assesses the damage, and if it finds it due to regular wear and tear, your claim might be rejected.

Engine protection is considered to be a useful add-on for all vehicles, as engine repairs can be expensive. 

• Diesel engines operate at higher compression ratios and are built with more expensive components, such as turbochargers and high-pressure fuel injectors. 

• Even minor issues, such as water ingress, can lead to expensive repairs

• Therefore, engine protection cover is especially valuable for diesel vehicles.

Yes, absolutely. Engine protection covers gearbox and transmission damage resulting from consequential water ingress or oil leakage. It is recommended that you understand the inclusions and exclusions of the engine protection cover. Damage caused by normal wear and tear and/ or negligence is typically not covered.

Warning lights in your car must not be ignored.
Remember:

• Continuing to drive after a warning light turns on can cause further damage to the engine.

• If the damage is found to be due to negligence, your insurer may reject the engine protection claim.

• They can not only increase the possibility of claim denial but also cause further damage.

• Once you have raised a claim, your insurer sends an inspecting officer to inspect the damage.

• The claim is settled only after the officer verifies and approves the claim. 

Under roadside assistance cover, a network garage is preferred for cashless claim settlement. However, depending on the location, the vehicle can be towed to any nearby garage or authorised repair centre.

Yes, roadside assistance will help in case your vehicle’s battery dies at night. Most insurance companies offer 24/7 roadside assistance. The technician will either try to jump-start the vehicle or tow it to a nearby garage if the battery is completely dead. 

Yes. Roadside assistance is available on remote highways and in hilly areas. However, how quickly help reaches you depends on the availability of help, your location, timing, insurance provider, and other factors. Some insurance plans may offer free towing only up to a specified distance. 

Yes, most comprehensive motor insurance policies provide help for lost keys or locked-in keys. This usually includes sending a technician to unlock the vehicle, help in retrieving spare keys, and towing the vehicle to a locksmith or dealership.   

The number of claims allowed under roadside assistance in one policy year varies depending on the insurance provider and the motor insurance plan you have purchased. It is suggested that you understand the terms and conditions when you choose the add-on.

Typically, under roadside assistance cover, insurance companies provide a limited, but adequate, quantity of fuel delivery to help you reach the nearest gas/ service station. While this can be a part of the cover, this is subject to locations, timings, and policy details.

Roadside assistance is typically an add-on cover that you can add to your existing motor insurance policy with a minimal additional premium. You can include roadside assistance as an add-on benefit at the time of policy purchase or policy renewal. Mid-term addition is not allowed. 

Roadside assistance add-on provides emergency, on-the-spot services. It generally covers the following:

• Mechanical or electrical breakdowns (engine, battery, starter, etc.)

• Flat tyre assistance

• ‘Out of fuel’ support

• Jump-starts for dead batteries

• Emergency towing to the nearest workshop

• Lockout assistance if keys are misplaced.
  Accident-related damages are covered under regular comprehensive car insurance plans. 

Yes, even a minor claim raised during one policy year will lead to cancellation of the no-claim bonus (NCB). NCB is offered only when you have not raised any claim during a policy year.

Tips: 

• Ensure that you are mindful of raising claims for this kind of damage. It is often advised that you do not make small claims, especially if you have accumulated NCB. 

• You can also opt for a no-claim bonus protection add-on cover to protect your NCB even after raising a claim. 

Yes, NCB is a benefit linked to you as the driver/ owner and not the insured car. Therefore, when you sell your car and buy a new one, you can get the NCB transferred. Remember that when you sell your car to a different person, the NCB stays with you and is not transferred to that person. You can claim the NCB when you buy a new policy.

Once your policy expires, you have a period of 90 days to save your NCB. Not renewing the policy within this period means losing your accumulated NCB, no matter how much it is. It is highly recommended that you renew your policy before it expires to enjoy break-free coverage.

No, your NCB does not reduce or change when you change your insurance provider. The NCB gets transferred to your new policy seamlessly if there is no break between your existing policy's expiry date and the new policy's issuance date. This is an integral part of motor insurance portability rules as well. 

Typically, you lose NCB if you raise a claim during one policy year. However, you can protect your accumulated NCB by opting for a no-claim bonus protection add-on. This is an add-on cover that allows you a limited number of claims during one policy year without impacting your NCB.

NCB applies only to own damage and not third-party insurance. This simply means that the benefits you have accumulated under NCB can be utilised as discounts for the own damage insurance premium only. Therefore, to enjoy the benefits of NCB, you must have either your own damage or a comprehensive car insurance policy. 

If you have received a payout from the insurance company, your NCB resets to zero. This is simply because a payout in case of vehicle theft or total loss is a claim settled by the insurance provider. 

No claim bonus is calculated as a percentage discount on the own damage premium and not on the IDV. Remember that IDV is the amount determined at the time of purchasing or renewing the policy. 

No, two cars can not share the same NCB. NCB is a benefit linked to the policyholder and not the vehicle. So, even if you own multiple vehicles, each vehicle will have its own separate NCB. 

Yes, consumables typically comprise engine oil, coolant, grease, and other similar fluids that are used during accident repairs if the replacement is directly related to a valid insurance claim.

In general, brake oil is covered if it is replaced during accident repairs. AC gas refilling is usually not covered unless it is a leakage or damage that has been caused by an accident and is approved.

A consumables cover can be beneficial for both new and older cars. 

• It covers the cost of replacing consumable parts when your vehicle is damaged.

• In new cars, repair costs are significantly higher.

• Insurers normally deduct consumable expenses from the claim amount.

• This add-on helps reduce your out-of-pocket expenses during repairs.

Consumables cover applies only to admissible accident-related claims. It does not apply to routine maintenance, breakdowns, or wear-and-tear repairs or replacements.

Yes, small hardware items such as nuts, bolts, washers, clips, and fasteners replaced during accident repairs are covered under the consumables add-on.

No, wheel alignment and balancing are maintenance services. Therefore, they are mostly excluded from the consumable cover unless the insurer's policy wording explicitly states them.

Here’s a list of services and items typically covered under consumables coverage: 

• Lubricants and fluids like engine oil, brake fluid, power steering oil, etc. 

• Hardware items like nuts, bolts, and screws.

• Different types of filters, such as oil, air, and fuel filters.

• Coolants such as air conditioners, coolant, radiant coolant, etc.

Coverage for consumables is typically not an inbuilt feature of your motor insurance plan. The claim is paid only if you have opted for the add-on. In cashless claims, it is applied automatically only when the add-on exists.

No, the consumables cover does not affect depreciation. Depreciation is handled separately and can only be reduced or eliminated with a zero depreciation add-on. 

Here’s how they differ:

• Consumables cover is an add-on that protects you from out-of-pocket expenses for consumable items like fluid, bolts, and nuts, etc.  

• Zero depreciation is an add-on cover that protects you from depreciation on car parts like metal and rubber. 

Yes, the return to invoice pays the original invoice amount for the car in the event of vehicle theft or total loss. The payout under this add-on cover includes ex-showroom price, registration charges, road tax, etc., that you paid at the time of purchasing the vehicle. 

Typically, insurance companies include road tax and registration charges under RTI cover. Ensure you check the policy documents, as some insurers may exclude certain state taxes or cap payouts.

Return to invoice cover is available for cars up to three years old. However, some insurance companies might provide this add-on cover for vehicles older than 3 years. It is best that you check the same with your car insurance provider.

Return to invoice steps in as soon as your vehicle is declared a total loss, even if it stems from partial damage. Know that once the repair costs of vehicle damages exceed a certain percentage of its insured declared value (IDV), your insurance company declares the vehicle as a total loss.

Return to invoice and insurance declared value have different roles in case of a total loss claim.

Here’s how:

• Return to invoice is an add-on coverage that provides compensation that is equivalent to the invoice amount of the vehicle, in case of a total loss.

• Insured declared value is the maximum amount that the insurance company agrees to pay in case of a total loss or theft under your comprehensive car insurance policy.

Additional payment for covering accessories fitted at the time of purchase depends on your insurance policy and the insurance provider. Typically, RTI covers standard factory-fitted accessories that were included on the original invoice. You can check the coverage with your insurance company.

Yes, absolutely, RTI is one of the most valuable add-ons you can have, especially if your car is financed. Here’s why:

• RTI covers the gap between the Insured Declared Value (IDV) and the outstanding loan amount.

• The claim payout can help you clear the remaining loan balance.

This prevents you from continuing to pay EMIs for a car you no longer have.

Yes, RTI is applicable in cases of total loss caused by natural disasters such as floods, earthquakes, and cyclones, provided the damage is covered under your comprehensive car insurance policy. Just make sure that:

• Your car is still in the eligibility period

• Damage must not fall under policy exclusions (driving in water-logged areas against advisories or under the influence of an intoxicant)

Yes, absolutely. Return to invoice is an add-on cover that you can remove after the first policy year. Removing an add-on cover is not allowed during mid-policy year and can be done only when the policy year comes to an end. However, protecting your new car with RTI is highly recommended.